I have a Joomla component.
Backend File Structure
Frontend File Structure
In Joomla in the front-end component we can use the back-end models rather than using front-end models. According to the my knowledge, logic stays in the model. So if we use separate front-end and back-end models and if we come across a logic change we have to change two places instead of one. But if we use back-end models for the front-end too we only have to change the logic in one place. It's easier to maintain.
Which is better method is better ? To create separate models for the fronted or use the existing back-end models ?
What's the Joomla standard? What's the industry standard? Which method should I use and Why? What are the pros and cons?
This is quite a good question. The problem that you are rising is that of the code duplication that occurs.
If the models are absolutely identical and the code can be reused, have a look at the question Joomla 2.5 ― using administrator components controllers in frontend part of component.
I think is really a question of code maintenance. I find it always annoying if I fix a bug somewhere that I should always remember that I also need to fix in in the other place also.